Fundamental & Technical Analysis | Analytics Steps
To understand the business from an investment perspective, there are always two schools of thought that come to mind, people who follow fundamental analysis and those who follow technical analysis . However some investors do both analysis to understand the business from every aspect. Let us understand both in detail. Fundamental analysis Fundamental analysis is a method or approach to understand business deeply and separate the daily short term noise in the stock prices to concentrate the underlying business performance. Fundamentally strong companies' stock prices tend to appreciate in the long run and therefore create wealth for the investors. Fundamental analysis is generally done from a macro to micro perspective in order to identify securities which are not correctly priced by the market. An investor can perform fundamental analysis just by looking at the overall state economy, bond value, interest rate etc. A fundamental analyst creates a model to estimate the company’s shar...